Ekuinas investing RM 100 mil in food chain !!
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KUALA LUMPUR: Ekuiti Nasional Bhd (Ekuinas) is investing a total of
RM98.3 million into the Burger King and San Francisco Coffee
franchises, marking its entry into the fast growing consumer food and
beverage sector.
The government-linked private equity fund management company
announced on Thursday, Sept 15 that it would invest RM68.2 million in
the local franchise of Burger King, which involves a capital injection
of RM60 million into Malaysian franchisee Cosmo Restaurants Sdn Bhd.
Ekuinas also announced it was acquiring a 90% equity stake in
Lyndarahim Ventures Sdn Bhd, which is the owner and operator of San
Francisco Coffee, for a total investment of RM17.5 million out of which
RM14.5 million will be injected as new capital into the company.
Ekuinas will allocate an additional RM12.5 million investment to
expand their specialty coffee operations regionally, as well as to
invest in addition F&B brands.
The two investments will see Ekuinas aggressively expanding the
Malaysian operations of Burger King and transforming the operations of
San Francisco Coffee.
The two investments are Ekuinas' most recent, following direct
investment in four companies in 2010 and one recently through its
outsourced programme. In total, Ekuinas has undertaken investments
amount to RM594.84 million and facilitated economic capital deployment
of RM717.48 million into the Malaysian economy.
Burger King, under Cosmo Restaurants Sdn Bhd (currently majority
owned by CIMB PE through its funds under management, who will continue
to retain a significant minority interest in the company), currently has
24 outlets across Malaysia, and intends to extend the brand experience
by rolling out new outlets.
San Francisco Coffee, which currently holds approximately 7% market
share in the specialist coffee chain, believes that the newly-inked
partnership would assist the company - owned by former Bank Pembangunan
president Datuk Abdul Rahim Zin - in fast-tracking customer growth both
locally and in Singapore.
Abdul Rahim will retain a 10% stake and assume the role of chairman,
and will have the option of increasing his stake in the company at a
later date.
Commenting on Ekuinas' latest investment, chairman Raja Tan Sri
Arshad Raja Tun Uda said that "we are pleased to undertake these
investments given that the F&B sector is one of Ekuinas' six core
sectors."
He added that as the sector had a market size of RM23 billion, out of
which the chained F&B segment was estimated to be worth RM5.6
billion, the Malaysian foodservice industry offered significant growth
potential.
Source: The Edge
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